1. Chapter 13 Review

2. True or False
Standards are steps to be followed for performing a particular work activity.
False

3. MC An information manager is MOST likely to
(a) provide safety training for employees
(b) control a company’s energy costs
(c) develop inventory procedures for a company’s
finished products
(d) maintain a company’s voice mail system. D

4. True or False
A business that offers products that meet customer needs at competitive prices cannot fail.
False

5. MC Raw materials supplied by nature are called (a) natural resources
(b) processed goods
(c) human resources
(d) agricultural products. A

6. True or False
Businesses must develop new products to keep up with competition and changing customer needs.
True

7. MC
Matt is trying to determine if the building his company currently uses is large enough or if an expansion is necessary. Which business operation is Matt involved in?
(a) facilities management
(b) logistics
(c) scheduling
(d) safety and security. A

8. True or False
The economy begins with retailing.
False

9. True or False
An operational plan identifies how work will be done, who will do it, and what will occur.
True

10. MC
The forms of production are extraction, processing, manufacturing, and
(a) retailing
(b) wholesaling
(c) cultivation
(d) distribution. C

11. True or False
Mass production usually requires a smaller work area than custom production.
False

12. MC
Inventory is a detailed account of all of the following EXCEPT a company’s
(a) employees
(b) materials
(c) supplies
(d) finished products. A

13. True or False
Manufacturing involves changing and improving the form of another product.
False

14. MC The just-in-time process is which type of business operation?
(a) facilities management
(b) logistics
(c) scheduling
(d) safety and security. B

15. True or False
The best practices among all competitors are called benchmarks.
True

16. MC
This type of operations software monitors and often controls machines, checks for errors and defects, and reports on production levels.
(a) scheduling
(b) groupware
(c) supply chain
management
(d) manufacturing automation. D

17. True or False
Custom manufacturers work closely with individual customers.
True

18. MC
The activities, equipment, and resources needed to manufacture a product are part of the
(a) pure research
(b) product design
(c) production process
(d) applied research. C

19. True or False
Logistics personnel are responsible for locating and purchasing supplies.
True

20. MC
Which of the following is MOST likely to be manufactured by an intermittent processing procedure?
(a) a bridge
(b) a set of wedding invitations
(c) an automobile
(d) gasoline. B

21. MC
After a manufacturer establishes quality performance standards, the next step in the CPI process is to
(a) identify process activities
(b) monitor performance
(c) shut down production until the standards are implemented
(d) select measurement tools. D

22. Part 4 – Short Answer
Provide two examples for each of the three categories of products. For each example, identify one consumer use and one business us of the product.
Natural resources – coal, iron, water
Consumer use – heating
Business use – light
Agricultural – corn, wheat
Personal use – food
Business use – create processed goods
Processed goods - flour, cars, paper, appliances
Dishwasher
Packaging

23. Part 4 – Short Answer
What are the major differences between a processing business and a manufacturing business?
Processing – changes and improves an existing product
Manufacturing – combines and uses raw materials to make or create a product

24. Part 4 Short Answer
Why should business partners and customers be involved in a continuous improvement process?
To help identify problems and make the quality of a product better.

25. DEFINE: producers manufacturers applied research scheduling
facilities management
farmers
extractors
logistics
safety and security
pure research